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Re: News Releases - Wednesday, May 20, 2009
Probe Mines Enters into Joint Venture Agreement with Noront
Resources in McFauld's Lake Area
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Toronto, May 20, 2009 -- The Directors of PROBE MINES LIMITED (TSX-V:
PRB) ('Probe') are pleased to announce that a Joint Venture agreement
(the "Agreement") has been signed between the Company and Noront
Resources Ltd (TSX-V: NOT) ('Noront'), comprising 87 claim units
located in the "Ring of Fire" area of McFauld's Lake, Northern Ontario.
The claim units, comprising 4 individual blocks of Probe's claims,
fall along the interpreted ultramafic horizon in the area of the Eagle
One nickel-copper discovery (see map at www.probemines.com). The Joint
Venture does not include claims belonging to the Company's Tamarack or
Victory properties, and excludes recently staked claims immediately
north of the discovery area. The terms of the agreement will see the
immediate formation of a 50-50 Joint Venture between Probe and Noront,
under which Probe will act as operator for the first two years, and
alternate operatorship every two years thereafter, as long as equal
ownership is maintained. If one company acquires more than 50% of the
joint venture, full operatorship will be transferred to the larger
property interest. A technical committee will be formed comprising
members from both companies to approve exploration programs.
Probe had an option on certain claims held by Noront in this area in
2006 (see press release of December 22, 2005) and the option was
terminated by Probe in 2007 before the discovery of the Eagle One
deposit by Noront. Both Probe and Noront expressed concerns about each
of their respective property holdings in this area and their rights
pursuant to the historical option agreement. The joint venture is
viewed as the most practical arrangement to address and resolve all of
these historical concerns. In addition, Probe believes the joint
venture will benefit the Company, and therefore shareholders, by
providing for mutual data exchange and access to Noront's significant
experience and resources in the McFauld's Lake area, as well as
reducing costs associated with evaluating the economic potential of
these claims. To date, only 10 of the 87 claims have been subjected to
drilling and, as first operator, Probe will consider commencing
exploration at the earliest opportunity.
David Palmer, President and CEO of Probe, says "We are looking forward
to working with Noront to advance these properties and bring added
value to our shareholders. The potential for World-class deposits of
nickel-copper and chromite have reaffirmed our belief that the area is
one of Canada's most important exploration plays and has the potential
to become Canada's newest mining camp. Noront has continually led the
field in discoveries and, with their commitment to the area, we are
pleased to have Noront as a partner."
Further updates regarding the joint venture property and Probe's other
claims in the McFauld's area will be made available in the upcoming
weeks as the Company begins preparation for field work. Probe has
completed helicopter-borne geophysical surveys on all of its properties
in the area and has a drill available to begin operations following
Spring break-up.
McFauld's Lake
The McFauld's area continues to receive considerable attention with
recent reports of high-grade chromite and PGE mineralization from
Noront and Freewest Resources, in addition to continuing intersections
of high-grade nickel and copper at Noront's Eagle One, Eagle Two and
AT-12 discoveries. A preliminary economic assessment of the Eagle One
Ni-Cu deposit reported an estimated resource (indicated) of 1,834,000
tonnes averaging 1.96% Ni, 1.18% Cu and 5.1g/t combined platinum,
palladium and gold.
The discovery of chromite at McFauld's has added significantly to the
area's value. The first massive chromite horizon was identified by
Spider Resources in January 2006 while exploring for VMS
mineralization. Noront Resources identified further chromite
mineralization on its Black Bird 1 and 2 showings, while Freewest
Resources returned significant intersections of massive chromite in its
Black Thor and Black Label deposits. Highlights from the Freewest
drilling include a 124m intersection grading 30% Cr2O3. The chromite
occurrences are all located along a laterally extensive magnetic high
that can be traced for approximately 20km in a northeast direction,
along which many of the Probe-Noront joint venture claims occur.
About Probe Mines:
Probe Mines Limited is a Canadian base and precious metal exploration
company with a portfolio of highly prospective mineral properties. The
Company is currently focused on the McFauld's Lake area where it owns
931 claims covering almost 15,000 hectares. Probe currently has joint
venture agreements on its Bristol Township gold project (West Timmins
Mining Inc.) and Tamarack base metal project (Mantis Mineral Corp.).
The Bristol Project is adjacent to the million-plus ounce gold deposit
owned by Lake Shore Gold Corp., which has recently announced a positive
pre-feasibility study for the project. Probe also maintains a 5% net
smelter royalty on a portion of Agnico Eagle's Goldex Mine near Val
d'Or, Quebec, slated for production in 2008. The company's shares
trade on the TSX Venture Exchange under the symbol PRB.
David Palmer, Ph.D., P.Geo., is the qualified person for all technical
information in this release. To find out more about Probe Mines
Limited, visit our website at www.probemines.com, or contact:
David Palmer
President
Tel: (416) 777-6703
Karen Willoughby
Investor Relations
Tel: (866) 365-4724
Forward-Looking Statements
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release. No stock exchange, securities
commission or other regulatory authority has approved or disapproved
the information contained herein. This News Release includes certain
"forward-looking statements". All statements other than statements of
historical fact, included in this release, including, without
limitation, statements regarding potential mineralization and reserves,
exploration results, and future plans and objectives of Probe, are
forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will
prove to be accurate and actual results and future events could differ
materially form those anticipated in such statements. Important
factors that could cause actual results to differ materially from
Probe's expectations are exploration risks detailed herein and from
time to time in the filings made by Probe with securities regulators.
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Copyright (c) 2009 PROBE MINES LTD. (PRB) All rights reserved. For
more information visit our website at http://www.probemines.com/ or
send mailto:info@probemines.com
Message sent on Wed May 20, 2009 at 5:03:27 AM Pacific Time
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